U.S. household debt climbed to a record $18.59 trillion in the third quarter of 2025, according to the Federal Reserve Bank of New York, with higher balances across mortgages, credit cards, and student loans.
Millions of Americans are at risk of having their wages garnished as the federal government resumes collections on defaulted student loans.
Under the new plan, income and family size will determine the payments for current and future federal student loan borrowers with some payments dropping to zero dollars per month.
The action is a result of what the department calls a “fix” to income-driven repayment plans. It’s expected to provide $39 billion in federal student loan forgiveness.
The U.S. Department of Education launched the application process for those seeking student loan forgiveness in ‘beta mode’ as of Friday night, multiple reports say.
